Home The Big Story What Ad Lawyers Are Saying About AI

What Ad Lawyers Are Saying About AI

SHARE:
Logo for AdExchanger's Big Story podcast, with journalistic insights on advertising, marketing and ad tech

If you’re a diaper manufacturer who’s upset over what your competitors are saying about you on TikTok, what recourse do you have?

Well, one option is to turn to the ad industry’s self-regulatory organization. AdExchanger managing editor Allison Schiff went down to Washington D.C. this week to attend the National Advertising Division conference, where a bunch of lawyers specializing in advertising law discuss cases that have crossed their desk. During the conference they on emerging legal issues in AI, social media and protecting kids online, and Schiff got a firsthand look at what’s worrying these lawyers.

While the copyright issues related to AI-generated images have generated much discussion, the NAD focuses most on misleading claims in advertising, and how these images could mislead consumers. So using AI to generate images of products, say a hamburger, that differs from the actual product for sale put this group of lawyers on edge.

“If you open up a bag of chips, they’re not all perfectly formed, but AI is going to create you the perfect image of chips tumbling out of a bag,” Schiff says on this week’s podcast. But faked perfection is considered misleading advertising. In the past, companies that only showed perfectly formed chips (or nuts) tumbling out of a bag have been dinged.

Commerce conversion

But many marketers, especially those working at fast-growing companies looking for ways to cut costs or grow fasters, are feeling less cautious. Our deep-in-the weeds commerce senior editor James Hercher, who has been at back-to-back commerce conferences, encountered groups of commerce founders who are eager to hand tasks off to AI. If the platforms where they buy media, like Google and Amazon, offer AI products that save time or optimization work, they will jump to use them. In contrast, many larger agencies regard these products more warily, concerned with media quality or the conflict of interest inherent in such products.

While marketers are cheerily adopting time-saving AI, Hercher observed a disillusionment elsewhere. Among a certain group of digital marketers that are hyper focused on promoting their products within a specific platform – often Amazon, Meta or Google – there’s also a growing sense that precise attribution is further away than they thought, Hercher notes during the podcast.

It’s as if they cracked open a box expecting all the answers but only found more questions inside. The more close-up a look a marketer gets at measurement or journey tracking, the more messy and imprecise attribution seems.

Must Read

Why Media Mergers And Spin-Offs Don’t Always Keep Their Promises

With media megamergers, acquisitions and spin-offs left and right, the media landscape is changing at a pace that is difficult to keep up with.

TransUnion is partnering with Blockgraph so that advertisers can use its identity data to target, reach and measure TV households across channels.

How This Disaster Relief Nonprofit Tapped First-Party Data To Reach Donors Year-Round

Staying top of mind for potential donors is an ongoing challenge for Direct Relief. Nexxen’s audience curation helped it spread and sustain awareness.

Why Major UK Publishers Are Finally Joining Forces To Curate Ad Inventory

Atria’s collective approach is a response to growing monetization challenges and the need to protect the value of human journalism in the AI era.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Toronto Canada pride parade includes a crowd waving pride flags

Ad Performance And Politics Steered Brand Dollars Away From LGBTQ+ Communities – But The Pendulum Will Swing Back

The current administration has discouraged many marketers and organizations from showing support for the LGBTQ+ community, including during Pride month.

How AI Can Enhance Content Without Generating It

As much as consumers complain about AI-generated content, advertising experts say AI still has an important place in video creation and production, including for ads. But using AI in content without turning off consumers is a tricky dance.

How Tovala Banks On Subscriptions And Incrementality – But Not Ads – To Profit From Its Oven

Smart TVs, refrigerators and other home appliances may pester you with marketing, but at least the hardware is cheap. Another startup taking a different approach to the same theory is Tovala, which was founded in 2015 and combines a standalone countertop oven with a weekly meal kit subscription.